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Strategy implementation in 2013

Neste Oil continued implementing its cleaner traffic strategy during 2013 through its Value Creation Programs. Launched in 2011, these programs will be the company’s main focal areas over the next few years, and the progress made towards the targets they contain is monitored on a regular basis. During the strategy process in 2013, the number of Value Creation Programs was reduced from five to four programs, as most of the targets of the Winning Culture program are continuing in the Way Forward initiative.

Profitable Growth

Value Creation Program

Target

Successes in 2013

Profitable Growth

Achieve business targets and create profitable growth and new opportunities in all business areas

Sales of NExBTL diesel were extended to a number of new markets and the customer portfolio was expanded in existing markets (e.g. US).

Customer segments and future potential were identified in new NExBTL application areas (e.g. biochemicals and solvents).

Base oil sales increased and new customers were secured in Asia and North America, as well as Europe.

Product portfolio enlargened in Bahrain.

Productivity

Value Creation Program

Target

Successes in 2013

Productivity

Improve production efficiency and safety at all Neste Oil refineries

Cost efficiency and agility in the logistics network and operations to meet changing business needs

Operations at the new refineries in Singapore and Rotterdam achieved normal status. Action plan created to increase capacity to 120%.

Capacity utilization at the Porvoo refinery was 88% (87%).

Operating practices covering Diesel Line 4 at Porvoo were developed, extending the duration of incident-free operations on the line. The operating cycle of the line was longer than ever before and reached over 11 months.

Business-driwen enterprise architecture project created the foundation for developing company processes and modernizing ITC-systems.

Successful test run showed that tall oil pitch can be used as a refinery feedstock.

Implementation of energy efficiency plans proceeded well and the energy efficiency index hit a record low level.

Renewable Feedstock

Value Creation Program

Target

Successes in 2013

Renewable Feedstock

Improve the availability of competitive feedstock, processing capabilities, and the market and customer acceptability of renewable raw materials to ensure profitable growth

Increase the use of waste and residues as feedstock

Usage of waste- and residues-based raw materials was 52% and was altogether 1.22 million tons, 62% more compared to 2012.

Neste Oil achieved its certification target two years in advance. 100% of the crude palm oil is certified and traced.

Neste Oil was the first company to receive a RSPO-RED certificate for its refineries in Singapore and Rotterdam. In addition to existing ISCC-DE and ISCC-EU certificates, NExBTL renewable diesel refineries were ISCC Plus audited successfully.

Extensive R&D work continued in order to develop new raw materials for NExBTL production over the long term.

First contingent commercial off-take agreement for algae oil signed.

Milestone of over 1,000 reserched feedstock samples was reached.

Customer Focus

Value Creation Program

Target

Successes in 2013

Customer Focus

Create value together with Neste Oil's customers and strengthen the company's customer-focused mindset

Neste Pro Diesel, a premium-quality diesel fuel developed and produced by Neste Oil in Finland, was the first anywhere to comply with the WWFC category 5 specification drawn up as part of the Worldwide Fuel Charter (WWFC) by automotive manufacturers in Europe, the US, and Asia.

Together with our customers, Neste Oil has been able to create solutions that have increased value for everyone. These solutions have included logistics, premium and specialty products, and high-quality cleaner solutions.

Neste Oil's organisation was developed to be more customer-focused and to provide more customer service.